Daimler still strong, posts smaller quarterly revenue decrease than expected

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Mercedes parent company Daimler has confidence in the future. The company more or less maintained its operational revenue in the third quarter.

The decline of 1 percent compared to a year earlier was better than analysts had taken into account. As previously indicated by Daimler itself, the profit was expected to decline considerably and so was the revenue.

The German car manufacturer achieved a quarterly revenue of 40.2 billion euros, compared to 40.8 billion euros a year earlier. Market experts had on average expected a gross revenue decrease to 39.2 billion euros, partly due to a previous warning from Daimler about a disappointing sale of vans. From July through September, Daimler sold 794,700 cars and commercial vehicles worldwide, which is 4% fewer than in the third quarter of last year (Q3 2017: 824,100).

Daimler warned already for a significantly lower profit, due to additional costs related to the settlement of the diesel scandal in the automotive industry. Third-quarter net profit decreased by 21 percent to 1.761 billion euros (Q3 2017: €2.2 billion). Unit sales of 559,500 vehicles by Mercedes-Benz Cars in the third quarter of 2018 were significantly below the high level of the prior-year period, while revenue decreased by 7% to €21.7 billion.

For the whole year, the company maintains its objective of a slightly higher turnover. Topman Dieter Zetsche also said he would count on a recovery in the fourth quarter after two profit warnings in a row.